Question & Answer: 1. Explain fully how marketers use segments to understand the needs and wants of different consumer…

Expert Answer

1. Customer segmentation is area where marketers identify key differentiators that help to divide customers into groups. And later these groups can be targeted by the compnies. Various information such as a customers’ demographics related to customer base’s age, race, religion, region, gender, family, ethnicity, income, etc, place where they have lived and work, also psychographic like the social class, customer’s lifestyle and various personality characteristics and their behavior like those of spending, economic conditions, etc and other tendencies taken into account . All these help in determining various customer segmentation practices.

By enabling companies ad organizations to target those customer base where specific groups of customers, and required customer segmentation model is allowed. this is for the effective allocation of numerous marketing resources and then leads to maximizing marketing opportunities such as of cross selling opportunities.

2.There are many consumption patterns which are fully addictive and compulsive like those of smoking habbits or alcohol consumption where even when the customer knows its not healthy and understands the repurcussions of smoking or drinking excessively. However still they get into compulsive and addictive consumption and go ahead with smoking and drinking.